Chicago wheat futures rebounded to around $8 a bushel, rising from the three-week low of $7.7 on November 30th, as supply concerns and high import tenders underpinned prices. Continued rains in Australian wheat producing regions dented the harvest’s quality. Despite higher crop output forecasts for 2021/22 by the Australian Bureau of Agricultural and Resource Economics and Sciences, recent harvests show lower protein grades in the crop, curbing supply. Further, prices were lifted by buyers taking advantage of the recent dip caused by the Omicron variant, as seen in the Saudi Grains Organization’s tender of 535 thousand tonnes of wheat for arrival in between May and July of 2022.
Historically, Wheat reached an all time high of 1334.50 in February of 2008. Wheat - data, forecasts, historical chart - was last updated on December of 2021.
Wheat is expected to trade at 749.01 USd/BU by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 825.59 in 12 months time.